Shiba Inu (SHIB) is showing signs of a potential price rebound despite recent downward pressure, trading around $0.00001306 as bulls attempt to mirror gains across the cryptocurrency market. The memecoin's recovery prospects are bolstered by two major catalysts: growing chatter about a potential Shiba Inu exchange-traded fund (ETF) and the Federal Reserve's recent 25-basis-point interest rate cut announced on September 17, 2025.
Technical analysis reveals SHIB is forming a symmetrical triangle pattern, which typically precedes a significant breakout. A successful upward break could target $0.00001760, representing a 35% increase from current levels and matching May 2025 highs. However, a breakdown below support could see prices fall to $0.00001013, April 2025's lowest level.
Notably, SHIB's exchange reserves have decreased to 283 trillion tokens from 290 trillion in August, indicating a supply shortage that historically precedes price increases. This reduction suggests investors are becoming more confident in holding SHIB long-term, particularly with smart money investors continuing to accumulate the token throughout 2025.
The Shibarium team has actively promoted the ETF possibility, stating: "With a multi-billion dollar market cap, global exchange listings, and one of the largest retail communities in crypto, SHIB already meets some of the same criteria that made Bitcoin and Ethereum ETF-ready. An ETF could expose SHIB to a new class of investors who prefer traditional financial products, bringing more attention (and legitimacy) to the token."
Despite these positive indicators, trading volume has decreased by 12% to $177 million, suggesting market indecisiveness. SHIB's recent price dip followed a security breach affecting Shibarium that caused the token to drop out of the top 20 cryptocurrencies by market capitalization, currently standing at $7.69 billion.